George Frangeskides, Exec-Chair at Alba Mineral Resources, discusses grades at the Clogau Gold Mine. Watch the full video here.
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Hargreaves Lansdown also promoted Woodfords patient capital trust and we all know what happened there.
Prussell
In normal times I would agree with you. However, at the moment, when so many investable businesses e.g banks have stopped paying dividends , I think that institutions such as pension funds have put pressure on Tesco to pay a special dividend in order for them to pay their annuity obligations. For many institutions major income streams have dried up
what happened when vodafone did special dividend a few years ago after selling verizon? did their sp drop by same amount?
Terry Smith, who knows far more about investing than many of us ever will, based on his own personal fortune success!! claims that share buy backs and special dividends should only be used if there is no better use for the cash to grow the value of the business. He actually puts the idea that Boards who offer such may be suffering from an inability to act in the growth and value interest of the business overall. A lack of imagination possibly??
Something a bit more up to date, out of all the companies in the world they could select, Hargreaves Lansdown names TESCO as one their 5 Tips for 2021. Well worth a punt I'd say.
I would like to spread the new of my marriage to my lovely wife......20 years ago...we are now divorced and loathe each other
Why post something from October ? Totally not relevant and just a distraction that muddies the water...or did Cdmorear not realise the article date ? Thanks for pointing out it's gone way past it's Sell by Date...
Something else that's equally relevant....
https://www.theguardian.com/business/2010/apr/25/tesco-record-profits-terry-leahy
HI DT270380
I know but a gentle reminder of a positive news story, especially in these times, should not cause any harm.
cdmoreear
This article is from October - it's about the half year results not the Q3 and Xmas trade update
I see the algo trades are having to work overtime today. :)
cdmoreear
thanks for the link. We will see if the city has already priced in the trading update. For me the I am looking further forward than the SD, hoping to reinvest it here thereby increasing the yield when ordinary dividends are payed.
Lots of scenarios from different lse members but it all boils down to each investors personal circumstances.
// Tesco shareholders hoping for a nice payout in half-year update, especially after selling off its Asia business, analysts say
// Tesco expected to post £58.5bn in sales, operating profit predicted to be £2.2bn & pre-tax profit £1.4bn
Analysts said Ken Murphy, might want to impress with a payout, slicing up some of the cake from recent big windfalls, such as the sale of Tesco’s Asia business.
https://www.retailgazette.co.uk/blog/2020/10/tesco-shareholders-hoping-for-nice-payout-in-half-year-update/
thanks to all...lots of food for thought.
Nigella.
Absolutely zero chance of a share buy back. This was not proposed in the original circular and voted on.
It's the company saying "I have nothing worth investing this cash in, you have it"
While special dividends aren’t necessarily bad, at the same time there is no evidence that they provide any long-term benefit to investors.
In effect, they are neutral and sometimes can actually be negative, especially if they result in slower long-term earnings and dividend growth.
Thus, investors would be wise to avoid the temptation to “chase” special dividend announcements.
Due to the fact that the share price should fall by the exact same amount, and that the company will lose the financial flexibility of that cash, the best strategy for dealing with special dividend announcements is the same as most Wall Street news: do nothing.
The "market" is a fluid ever-changing phenomenon not a fixed value in time. Zero sum thinking never applies.
It's hard to say what will happen the SP EX div, my intention has always been to sell prior to ex div, maybe even on this Thursday's results, but I can keep an open mind as things develop .. a few investors splashing out big money today, hopefully a good sign ..
Why before then? Just keep your cash and pay yourself the dividend?
Any "premium" was factored into the share price as soon as it was public knowledge. i.e. if the "market" thought it was a good deal the share price rises on the announcement. (Or prior to an announcement if it was expected)
And yes, once a stock goes ex Divi it's price drops by the dividend amount immediately. (When it goes ex Divi existing share holders are entitled to the dividend at a point in the future even if they sell their shares before this)
It doesn't make any difference whether a dividend is paid from sale of a bit of the business from normal earnings or even extra debt the companies takes out to specifically pay a dividend.
Share consolidations won't make you richer or poorer either. You can't create value of think air.
When a company acquires another or (part thereof)of a profitable company a premium is normally attached to the purchase price. This sale of the profitable Tesco Asia business is no different....take the premium!
Thanks leas Re: ex divi date, was thinking of topping up by then
As the special dividend is being paid out of funds coming from the sale, in theory, it shouldn't drop
It will be 51p, no share buyback but remaining cash from the Asia sales will be going to the Pension Fund. It may well drop by 51p but then again you could see ‘new money’ coming back in who did not want to pay any tax on the SD payment.
Also have to remember the regular dividend payable later in the year .